For immediate release
Chicago, IL – April 13, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include JB Hunt Transport Services JBHT, General Dynamics GD, Chevron CVX, CF Industries CF and Weyerhaeuser WY.
Here are the highlights from Tuesday’s analyst blog:
Top 5 S&P 500 Stocks to Harness Q1 Earnings Growth
The first-quarter earnings season is set to kick off this week, with the banking sector expected to report numbers. Although earnings growth is expected to slow significantly from recent quarters due to mounting cost pressures and supply chain disruptions, the earnings picture remains strong.
While most stocks are expected to outperform this earnings season, we’ve focused on the best stocks in sectors that are likely to surprise in their upcoming releases. These actions – JB Hunt Transportation Services, General dynamics, Chevron, CF Industries, and Weyerhaeuser – could make some big plays as the Q1 earnings season unfolds and will likely move higher in the days ahead.
Earnings trend in the first quarter
Total S&P 500 earnings are expected to rise 3.2% from the same period last year with revenue up 10%. This would follow Q4 earnings up 32.5% and Q3 growth of 41.4%.
Earnings estimates are down 0.3% since the start of the period, with revisions to the energy and financials sectors moving in opposite directions. Of the 16 Zacks sectors, 10 are expected to gain over a year.
Transportation and aerospace are likely to see huge profit growth as they both suffered losses in the prior year quarter. The other eight sectors are expected to see positive year-over-year earnings growth. Energy is expected to be the top contributor to S&P 500 earnings with growth of 199.7%. Next probably come basic materials (44.2%) and construction (15.8%).
How to choose stocks?
Rising earnings will certainly inspire investor confidence and propel the price of stocks in these sectors higher. Picking the best performers would be easy if we followed our proprietary methodology which selects S&P 500 stocks with a combination of a favorable Zacks ranking – Zacks ranking #1 (strong buy) or 2 (buy) or 3 (hold) – and a positive Zacks Gains ESP.
You can see the full list of today’s Zacks #1 Rank stocks here.
Earnings ESP is our proprietary methodology for identifying stocks that are most likely to surprise with their upcoming earnings announcements. It shows the percentage difference between the most accurate estimate and the Zacks consensus estimate.
Our research shows that for stocks with this combination, the probability of a positive earnings surprise can be as high as 70%. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.
Let’s dig deeper into the sectors of the five stocks chosen above:
JB Hunt is a provider of a wide range of transportation services to a diverse group of customers across the United States, Canada and Mexico. He has a Zacks Rank #2 and a +1.86% Earnings ESP. JB Hunt saw a positive revision to its earnings estimate of a penny over the past 30 days for the first quarter, indicating substantial growth of 37.2%.
JB Hunt has achieved a positive earnings surprise of 10.19% over the past four quarters. The company is expected to release its results on April 18.
General Dynamics is committed to critical information systems and technologies; ground and expeditionary combat vehicles, armaments and ammunition; shipbuilding and marine systems; and business aviation. He has a Zacks Rank #3 and a +0.54% Earnings ESP.
Over the past month, the stock has had no earnings estimate revisions for the yet-to-be-released quarter and has a stable earnings growth rate. General Dynamics has posted a positive earnings surprise of 3.7% over the past four quarters and is expected to report results on April 27 before the market opens.
Energy’s Chevron is one of the largest publicly traded oil and gas companies in the world, with operations in nearly every corner of the globe. He has a Zacks Rank #2 and a +2.58% Earnings ESP. Zacks consensus estimate for the yet to be released quarter has been revised up 23 cents to $3.23 in the past 30 days, representing growth of 258.9%.
Chevron has posted a surprise 6.28% profit over the past four quarters. It is expected to publish its results on April 29 before the market opens.
CF Industries is one of the largest manufacturers and marketers of nitrogen fertilizers and other nitrogen products in the world. It is a major producer of nitrogen fertilizers in North America. CF Industries has a #2 Zacks ranking and +3.72% Earnings ESP. The stock has seen a strong earnings estimate revision of 15 cents in the past month for the quarter ahead and has an expected earnings growth rate of 502.9%.
CF Industries has posted a surprise average profit of 0.02% over the past four quarters. The company is expected to release its results on May 4.
Weyerhaeuser is one of America’s leading forest products companies with operations primarily concentrated in Southern California, Nevada, Washington, Texas, Maryland and Virginia. He has a Zacks Rank #2 and a +3.95% Earnings ESP.
Weyerhaeuser saw a positive earnings estimate revision of 17 cents for the quarter not yet released in the past month and has an expected growth rate of 25.3%. It delivered a positive earnings surprise of 1.59% over the past four quarters. Weyerhaeuser is expected to release results on April 29.
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.
Zacks names ‘only one best choice for doubling up’
From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.
It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.
This company could rival or surpass other recent Zacks stocks which are expected to double like Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one year .
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General Dynamics Corporation (GD): Free Inventory Analysis Report
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JB Hunt Transport Services, Inc. (JBHT): Free Inventory Analysis Report
Weyerhaeuser Company (WY): Free Stock Analysis Report
CF Industries Holdings, Inc. (CF): Free Inventory Analysis Report
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